Which of the Following Is an Audit Procedure That Auditors

question 6

Multiple Choice

Which of the following is an audit procedure that auditors most likely would perform concerning litigation, claims, and assessments?

• A)Request the client's attorney to evaluate whether the client's pending litigation claims, and assessments indicate a going concern problem.
• B)Examine the legal documents in the client's attorney's possession concerning litigation, claims, and assessments to which the attorney has devoted substantive attention.
• C)Discuss with management its policies and procedures adopted for evaluating and accounting for litigation, claims, and assessments.
• D)Confirm directly with the client's attorney that all litigation, claims, and assessments have been recorded or disclosed in the financial statements.

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